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The Technology Performance Impact Equation

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What’s the true impact of technology performance issues? After surveying 304 executive from global organizations, we found that despite a growing dependence on technology, few businesses give performance or #techfail(s) the attention and investment it requires. The full study can be found at http://www.compuware.com/techfail

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+TECH ISSUECOST

x FREQUENCY RECOVERYTIME =?

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Measuring IT performance and its impact on business is a complex activity.

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Measuring IT performance and its impact on business is a complex activity. As a result,

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MOST COMPANIES DON’T FULLY UNDERSTAND THE COST OF A TECHNOLOGY PERFORMANCE ISSUE. Paul Czarnik, CTO Compuware

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To give you a head start … WE MEASURED IT FOR YOU.

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THE AVERAGE COST OF A MAJORTECHNOLOGYFAILURE?6

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Says Who?

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304CORPORATEEXECUTIVESFROM GLOBAL COMPANIES

We surveyed

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74% from companies with an annual revenue of

$5 billionor more.

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And … e-commerce was excluded to keep the focus on operational impact.

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We asked a lot of critical questions but …

HERE ARE THE HIGHLIGHTS.

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94% of executives reporteda major technology performance issue within the past 3 years.

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51% say a major issue occurred

in the past 3 months.

#TECHFAIL

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The average short-term costs of reported technology failures were

SIGNIFICANT.

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Total Short-term Cost

Recalled/wasted Products $4MSales and Marketing $13M

$17M*

*Average cost among those that reported a short term cost in these areas

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When our distribution inventory databases went down, we couldn’t ship our product. Plus, we lost awareness of stock levels, causing us to resort to a manual count. The bottom line was a big loss in sales, plus some very upset customers.

— U.S. based Manufacturing Executive

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We hate to be the bearer of bad news …

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We hate to be the bearer of bad news … But the deeper you dig,

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We hate to be the bearer of bad news … But the deeper you dig,

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THE LARGER THE RAMIFICATIONSOF TECH PERFORMANCE ISSUES.

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80%MORE THAN

#TECHFAIL

said this identical failure happened before, with half reporting it occurred at least one to two times prior.

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Technology performance failures are not easily resolved…

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THE CHALLENGE: IT Departments are treating symptoms, not finding solutions for tech failures.

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2124

IT TAKES

#TECHFAIL

TO GET BACK TO NORMALAFTER A FAILURE.

DA

YS

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A thriving company must have a thriving, respected and LoB- integrated IT department.

Paul Czarnik, CTO Compuware

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And your company’s IT department is missing the REAL IMPACT on your business …

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IT Executives said it took just

11 DAYSto recover from a failure.

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IT Executives said it took just

11 DAYSto recover from a failure.

LoB Executives …

24 DAYS

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75% of executives report the frequency of IT failures are

increasing or staying the same.

#TECHFAIL

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This lack of integration is compounding the negative effects of technology failures, causing

SIGNIFICANTLONG-TERM IMPACT.

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45% of executives say tech failures result in aloss of market share or brand equity.

#TECHFAIL

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+TECH ISSUECOST

x FREQUENCY RECOVERYTIME =?

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SO HOW DO YOU

SOLVE THE PROBLEM?

+TECH ISSUECOST

x FREQUENCY RECOVERYTIME =?

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YOU NEED AN INTEGRATED

TECHNOLOGY PERFORMANCE STRATEGY.

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YOU NEED AN INTEGRATED

TECHNOLOGY PERFORMANCE STRATEGY.

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No company can roll back IT complexity. And that is a major cause of costly and repetitive technology issues.

An end-to-end technology performance strategy is critical to business success.

Paul Czarnik, CTO Compuware